Tesla may end up the only victim as Canada mulls punitive tariffs on Chinese-made EVs

Name: SCMP
Telephone: +852-2680-8888

The only battery-powered car built in China and exported to Canada is Tesla’s Model Y assembled at its Shanghai factory that is currently subject to a 6 per cent import tariff

Reading Time:2 minutes

Why you can trust SCMP

A lorry transports new Tesla cars from its factory in Shanghai. Photo: Reuters

Daniel Renin Shanghai

Published: 8:00pm, 25 Jun 2024Updated: 3:25pm, 25 Sep 2024

Canada accused China of “anticompetitive practices” as it announced it is set to launch a public consultation exploring potential tariffs on Chinese electric vehicles (EVs), similar to that carried out by the US government.

The month-long drive to solicit public opinion, which starts on July 2, will pave the way for policies to protect workers in Canada’s automotive industry and its growing EV businesses from unfair trade practices, the Department of Finance said in a statement. At present, no Chinese brands of electric car are sold in Canada, according to the country’s CTV News.

“Canadian workers and the auto sector are facing an intentional, state-directed policy of overcapacity, undermining the Canadian EV sector’s ability to compete in domestic and global markets,” Chrystia Freeland, deputy prime minister and finance minister, said in the statement.

“This consultation will consider what action we can take to protect our workers, level the playing field, and prevent transshipment or oversupply from China’s anticompetitive practices.”

The exercise launched by Prime Minister Justin Trudeau’s government comes six weeks after the White House announced a quadrupling of tariffs on China-made EVs from 25 per cent as part of an array of measures to penalise US$18 billion of Chinese imports. Lithium batteries, steel, critical minerals, solar cells and semiconductors were also slapped with the higher levies by the Biden administration.

02:03

Chinese-made electric vehicles face additional EU import tariffs of up to 38%

The consultation will also seek feedback on cyber and data security related to protecting Canadians’ privacy and national security interests.